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Terms used in freight forwarding such as Advanced Shipping Notice,advance freight,Agency Fee,Air cargo Agent etc.
This post explains about terms used in freight forwarding such as Affreightment, Advising Bank,Advanced Shipping Notice,advance freight,Agency Fee,Air cargo Agent,Air Waybill,Aircraft Container,Aircraft Pallet,Airport Code,all risk etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
Terms used in freight forwarding
AD:Terms of payment: if the buyer of goods pays for the goods against transfer of the documents, entitling him to obtain delivery of the goods from the carrier.
addressee.
ADVANCE FREIGHT:Partial payment of the bill of lading freight in advance; in other respects is the same as guaranteed freight.
ADVANCED CHARGE: Transportation charge advanced by one carrier to another to be collected by the later carrier from the consignor or consignee.
Advanced Shipping Notice (ASN): Detailed shipment information transmitted to a customer or consignee in advance of delivery, designating the contents (individual products and quantities of each) and nature of the shipment. In EDI data standards this is referred to as an 856 transaction. May also include carrier and shipment specifics including time of shipment and expected time of arrival.
ADVICE NOTE: Canadian document advising a consignee of arrival of shipment under Canada Customs control – see Cargo Control No.
Advice Note:A written piece of information e.g. about the status of the goods.
Advising Bank - The Bank which advises the seller that a Letter of Credit has been opened in his favor by the buyer; however, the advising bank does not necessarily guarantee payment.
AES - All cargo with a value over $2500 that leaves the country must be filed with the U.S. Government through a form called a Shippers Export Declaration (SED). This is the responsibility of the shipper. Many times, the shipper does not know how, or may not want to do this work. They must then sign a limited power of attorney form, that authorizes the carrier to file on their behalf. New regulations state filing must now be submitted electronically through Automated Electronic Shipper export declaration (AES). Also, this must be filed 24 hours before time of sailing. Because of this rule, some of the ship lines are making documentation cuts very early, to make sure they are in compliance.
Affreightment -A contract to carry goods by ship or aircraft. Contracts of Affreightment are evidenced in the form of Bills of Lading, Charter-parties, and Air Waybills.
Affreightment: The hiring of a ship in whole or in part.
AFIF -The Australian Federation of International Forwarders
AFT: At or towards the stern or rear of a ship.
Aftermarket: A market for parts and accessories used in the repair or enhancement of a product. A secondary market created after the original market sales are finished.
Agency Fee - 1. A fee charged by forwarders and brokers for arranging and handling a shipment. 2. The fees charged by an agent of a ship’s owner for attending to the business of the ship whilst in port.
Agency Fee:Fee payable by a ship owner or ship operator to a port agent.
Agency tariff: A publication of a rate bureau that contains rates for many carriers.
AGENT (AGT): The relationship existing between two parties by which one is authorized to transact certain business for the other.
Agent (Agt.) - A person authorized to transact business for and in the name of another person or company. Types of agent are: 1.Brokers (Custom House or Freight Forwarders), 2. Commission merchants, 3. Resident buyers, 4.Sales agents, 5. Manufacturer's representatives,6.Destination agents,7.Steamship line agents
Agent: An enterprise authorized to transact business for, or in the name of, another enterprise.
Agent:A person or organization authorized to act for or on behalf of another person or organization An Agent is a corporate body with, which there is an agreement to perform particular functions on behalf of them at an agreed payment. An Agent is either a part of the organisation or an independent body.
AI - All Inclusive Rates.
Air cargo Agent:An agent appointed by an airline to solicit and process international airfreight shipments.
Air Cargo Containers: Containers designed to conform to the inside of an aircraft. There are many shapes and sizes of containers. Air cargo containers fall into three categories: 1) air cargo pallets 2) lower deck containers 3) box type containers.
Air Cargo: Freight that is moved by air transportation.
AIR FREIGHT :Term used to describe a shipment or goods that have a prior or subsequent move via an airline
AIR WAYBILL - A document that covers both domestic and international flights transporting goods to a specified destination. This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates it to carry the consignment to the airport of destination according to specified conditions.
AIR WAYBILL (AWB or MAWB): The document made out by or on behalf of the shipper which, when used, evidences the contract between the shipper and carrier(s) for carriage of goods over routes of the carrier(s).
Air Waybill (AWB): A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination
AIR Waybill / waybill:a document that establishes the terms of contract between shipper and transportation company, specifying the obligations of both parties. It serves as evidence of a contract of carriage, and a receipt for goods. This document made out by or on behalf of the shipper.
Air Waybill Data - MAWB: It eliminates the need for paper AWB or data re-entry.
AIR WAYBILL DATA MESSAGE (FWB): Standard CargoIMP message identifier for electronic Master
Aircargo Agent:An agent appointed by an airline to solicit and process international airfreight shipments.
Aircraft Container- A unit load device (ULD) which links directly with the aircraft cargo handling and restraint system. (See Aircraft Unit Load Device.)
AIRCRAFT ON GROUND (AOG): Applies to parts needed to return an aircraft to service and have first boarding priority
Aircraft Pallet -An item of equipment consisting of a flat platform with a flat undersurface of standard dimensions on which goods are assembled and secured before being loaded as a unit onto the aircraft. (See Aircraft Unit Load Device.)
AIRLINE CODE: A 2-letter code (occasionally alpha-numeric) which is the given abbreviated name of an airline
AIRPORT CODE: A 3-letter alpha code assigned by IATA to designate an airport location – all Canada airport codes begin with “Y”.
Airport Code:A three letter code assigned to all airport locations worldwide.
AIRRIDE: An air-cushioned suspension system (as opposed to spring)
All In - The total price to move cargo from origin to destination, inclusive of all charges.
All inclusive :A shipping rate that includes all shipping and accesorial charges.
ALL RISK :The broadest form of coverage available, providing protection against all risks of physical loss or damage from any external cause. Does not cover loss or damage due to delay, inherent vice, preshipment condition, inadequate packaging, or loss of market.
The above details describes about terms called in freight forwarding such as Affreightment, Advising Bank,Advanced Shipping Notice,advance freight,Agency Fee,Air cargo Agent,Air Waybill,Aircraft Container,Aircraft Pallet,Airport Code,all risk etc .These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post. Terms used in freight forwarding such Automated Broker Interface,AirCargo Automation,acceptance,Accessorial Charges
The information provided here is part of Import Export Training online
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